UK House Price Index
Research and Insight December 2020 index (published 27 January 2021)
Demand rebounds but lockdown makes sellers reluctant to list homes for sale
+4.3%
+13%
Current UK house price growth
Demand for homes in first 2 weeks of 2021 v 2020
-12%
Flow of new supply onto market in first 2 weeks of 2021
Executive summary
“ Rising demand and a lack of new homes coming to the market for sale will keep an upward pressure on house prices in the near term, especially in the more affordable parts of the UK.” Richard Donnell Research and Insight Director, Zoopla
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The third lockdown is exacerbating a supply/demand imbalance in housing.
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Demand has rebounded faster than last year, but the flow of new supply is slower as sellers are reluctant to list their home while restrictions remain.
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London the only region to register more supply – primarily flats, as owners trade-up for space and/or investors take gains ahead of possible tax changes.
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The strength of demand in 2020 H2 absorbed a lot of supply, meaning we start 2021 with 7% fewer homes for sale than a year ago.
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The result is upward pressure on prices – the UK growth rate is +4.3%.
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Three regions are recording their highest growth rates since 2007. Liverpool city has annual growth running at a 15-year high.
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70,000 households who agreed a sale in 2020 are at risk of missing the stamp duty deadline – the case for a short, 4-week extension grows.